Australian Taxation

Combination Q1:

Miss Russell QC (Queens Council) is a lawyer by day and a university lecturer by night. She receives salary from the law firm of $100,000 and salary from the University of $50,000. She is single and has private health insurance from 1 January 2019 to 30 June 2019.

During the year Miss Russell had to travel to see clients. She acquired the car on 1 October 2018 for $60,000. The acquisition cost was funded entirely by a loan at an interest rate of 15%. She has determined that the depreciation deduction on the car would be $2,300 for the year. In addition, Miss Russell incurred the following expenses during the year:

Registration and insurance $2,000

Repairs and maintenance $1,000

Oil and fuel costs $1,500

For the period 1 October 2018 to 30 June 2019, Miss Russell estimates the car travelled a total of 15,000 km, 12,000 of which were for business purposes.

She kept a logbook of all of her travels. Miss Russell also has mobile phone that she uses only for business purposes.

The cost of the phone is $300 per month and she pays this herself. Miss Russell also received $10,000 dividends on the 28 June 2019. These were partially franked to 80%.

Calculate Miss Russells net tax payable as at 30 June 2019.